What Is Group Health Insurance

Group Medical Insurance

A Group Medical Insurance (Employee Health Insurance) plan provides medical coverage for a group of people. This type of insurance policy is usually purchased by companies or organizations to provide medical coverage to their employees. The premium in this insurance policy is paid by the employer.

Benefits Of Group Health Insurance Policies

Group health insurance policies offer a variety of benefits to the employer as well as the employees. We will also discuss the benefits available to the employer as well as the group health insurance benefits available to the employees.

  1. Benefits of Group Health Insurance for Employers

Employee Retention : At present, there are many jobs available in different sectors. In such an environment, keeping employees connected to the company has become a difficult task. Employers can keep their employees connected to the company through a group health insurance policy. They can provide additional benefits to employees by extending the coverage in this insurance policy to their family members, thereby increasing the chances of the employee remaining with the company.

Tax Benefits : Tax benefits are also available in the health insurance policy taken by the employer for the employees of his organization. The employer can claim tax exemption on the premium paid under the Income Tax Act. This allows the employer to provide a group health insurance policy to its employees as well as reduce its tax burden.

What Is Group Health Insurance

Motivated Employees : Medical cost is very high in present era and it is likely to increase further in future. By providing this benefit to the employees through a group health insurance policy, you will work to increase their motivation so that they contribute more and more to the profit of the company.

Low Cost : A health group health insurance policy purchased for the employees of an organization is available at a comparatively low cost as compared to an individual health insurance policy.

Benefits of Group Health Insurance for Employees

Pre- existing Illness : Unlike an individual health insurance policy, a group health policy starts covering pre-existing illnesses from the very first day the policy is in force. This policy starts providing health insurance benefits to an employee from the day he joins the organization. Thus, there is no waiting period for pre-existing disease.

No limit on diseases : A group health insurance policy does not have any limit on diseases other than the pre-existing diseases covered and provides a comprehensive coverage .

Maternity coverage : A group health insurance plan also provides maternity benefits to the employees. Most of these plans provide comprehensive coverage for both c-section and vaginal delivery. Some plans also cover newborn babies.

What Is Included In Group Health Insurance?

  • Pre-existing diseases.
  • Maternity cover.
  • Baby cover.
  • Ambulance charges.
  • Pre and post hospitalization expenses.
  • domestic hospital expenses
  • Day care expenses.
  • Doctor’s fees.
  • Room rent and nursing charges.
  • Medicines and cost of diagnostics like X-rays, etc.
  • Radiotherapy, chemotherapy, pacemaker cost covered.

What Is Not Covered In Group Health Insurance ?

  • Some insurance policies do not cover the employee’s parents.
  • Non-allopathic treatments like homeopathy, ayurveda etc.
  • Limited validity of corporate health insurance policy for employees.
  • congenital disease.
  • AIDS treatment.
  • A disease caused by alcohol or drug abuse.

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